Venture Capital - Georgia

  • Georgia
  • Georgia is projected to see a Total Capital Raised in the Venture Capital market market of US$62.0m in 2024.
  • The Early Stage market is expected to dominate the market with a projected market volume of US$38.1m in 2024.
  • In global comparison, the United States is anticipated to generate the most Capital Raised, reaching US$264,500.0m in 2024.
  • Georgia's Venture Capital market is gaining traction with a focus on tech startups, attracting foreign investors seeking high growth opportunities.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

 
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Analyst Opinion

The Venture Capital market in Georgia has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences:
Entrepreneurs and startups in Georgia are increasingly turning to venture capital as a source of funding for their innovative ideas and business ventures. This is driven by a number of customer preferences, including a desire for financial support, expertise, and networking opportunities that venture capital firms can provide. Additionally, entrepreneurs are attracted to the flexibility and scalability that venture capital funding offers, allowing them to grow their businesses at a faster pace.

Trends in the market:
One of the key trends in the Venture Capital market in Georgia is the increasing number of venture capital firms and funds operating in the country. This trend is driven by both local and international investors who recognize the potential for high returns on investment in the Georgian market. As a result, there has been a significant increase in the amount of capital available for investment in startups and early-stage companies. Another trend in the market is the focus on specific sectors, such as technology, healthcare, and renewable energy. Venture capital firms are targeting these sectors due to their potential for high growth and profitability. This trend is also driven by customer preferences, as entrepreneurs in these sectors are more likely to seek venture capital funding to support their innovative and high-growth business models.

Local special circumstances:
One of the unique aspects of the Venture Capital market in Georgia is the strong support and encouragement from the government. The Georgian government has implemented several initiatives and policies to promote entrepreneurship and attract investment in the country. These include tax incentives, grants, and funding programs specifically targeted at startups and venture capital firms. This supportive environment has created a favorable climate for venture capital investment and has contributed to the growth of the market.

Underlying macroeconomic factors:
The growth of the Venture Capital market in Georgia is also influenced by underlying macroeconomic factors. The country has experienced stable economic growth in recent years, which has created a favorable business environment for startups and venture capital firms. Additionally, Georgia's strategic location at the crossroads of Europe and Asia, along with its well-developed infrastructure, makes it an attractive destination for international investors looking to expand their venture capital activities. In conclusion, the Venture Capital market in Georgia is experiencing significant growth due to customer preferences for venture capital funding, the increasing number of venture capital firms and funds operating in the country, the focus on specific sectors, the supportive government policies, and the underlying macroeconomic factors. These factors combined have created a favorable environment for venture capital investment in Georgia and are driving the continued development and expansion of the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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